Energy Inequality for Indigenous Australians: Evidence on Structural Drivers Across Two Decades

Inequalities in income, housing, and health between Indigenous and non-Indigenous Australians are well documented, yet differences in energy outcomes remain understudied. While prior research has largely focused on remote areas or specific aspects, this paper provides the first national-level analysis of Indigenous households’ experiences in the energy market, measuring the existence, scale, and structural drivers of energy inequality. Two indicators are examined: difficulties in paying energy bills on time and self-reported inability to heat homes adequately. Across two decades and independent datasets, Indigenous households are 9–10 percentage points more likely to experience energy stress, a difference that persists after accounting for income. Wealth emerges as the strongest explanatory factor, with housing tenure, education, and financial resilience also contributing substantially. Objective measures—arrears, disconnections, and hardship program participation—account for around 43% of the observed gap and provide practical means of identifying households at risk of energy stress. Energy stress is highly persistent, with households that had prior bill payment difficulties 47 percentage points more likely to encounter similar challenges again in 2023. These findings show that energy inequality is not merely a matter of short-term affordability but reflects deeper structural dimensions of economic inequality. Policies centred on income support alone are unlikely to eliminate these disparities. Access to modest emergency funds of only a few thousand dollars reduces the observed gap by about 73%, highlighting the potential of targeted, government-backed assistance to strengthen household resilience and prevent disconnections.